(Yicai Global) July 25 -- UK companies and investors should seize the opportunities presented by the further opening up of China's economy, according to a senior official at the country's embassy in London.

Relations and cooperation between China and the United Kingdom face new and historic opportunities, Qin Zhu, who is minister and deputy head of mission at the Chinese embassy, said in a speech to the fourth Europe Forum held by the China Europe International Business School in London. Qin suggested that the UK broaden and deepen cooperation in the financial sector.

Chinese President Xi Jinping unveiled new policies to expand China's opening up in a number of sectors including manufacturing and finance at the Boao Forum for Asia in April. London is a world leader in finance and the sector also looks set to be left out of any agreement with the European Union as the UK leaves the bloc next March, leaving the country free to clinch its own trade deals for financial services with countries such as China.

China will greatly increase access to its financial market through a number of initiatives, Qin said. "These measures will create important opportunities for British financial institutions hoping to invest in China," he said.

This year, China will roll out six measures, including removing the foreign ownership cap for banks and asset management companies, lifting foreign ownership limits on securities companies and lifting restrictions on the business scope for foreign-invested insurance brokerages. In addition, China will unveil five more opening-up measures including encouraging foreign ownership in a banking sector, substantially expanding the business scope of foreign banks.

The long-awaited link between stock exchanges in London and Shanghai is also due to open sometime later in 2018, enabling Chinese firms to sell depository receipts in the UK and vice versa. "More opportunities for financial cooperation will emerge with the much-anticipated launch of Shanghai London Stock Connect later this year," Qin added.

The 10th Economic and Financial Dialogue between China and the UK later this year would be a good chance to coordinate policies, further tap the potential for fintech and green finance cooperation and explore deeper financial collaboration, Qin said.

Developments related to China's Belt and Road Initiative could further bring out the potential of China-UK financial cooperation, he added. Belt and Road projects create huge demand for investment, finance and other services, such as agent banking relationships, syndicated loans, settlement and clearing. The UK has much expertise in international finance and has maintained close contact and cooperation with BRI participants. So China is encouraging the set up of financial service platforms in BRI countries.

The Shanghai-based China Europe International Business School, which hosted the event at which Qin spoke, is dedicated to serving as a bridge for the development and exchange of economy, culture, and talent between China and Europe.
Editor: William Clegg